The World's #1 Renewable Energy Network for News, Information, and Companies.

China’s Idle Wind Power Curbs Tariff Cuts, Regulator Says

China’s Idle Wind Power Curbs Tariff Cuts, Regulator Says

Switching off wind turbines in China because their electricity can’t be absorbed by the grid is limiting how much planners can cut incentives given to renewable power producers.

Developers “are unable to meet targeted returns” because of idled capacity in northern China even as wind farm costs have fallen to 8,000 yuan ($1,291) a kilowatt from 9,000 yuan in 2009, Yi Yuechun, deputy chief engineer at the China Renewable Energy Engineering Institute, said in an interview in Shanghai on April 7.

“Reasonable tariffs should secure an equity internal rate of return of about 10 percent for operators with a long-term borrowing rate of 6.55 percent,” Yi added.

The idled capacity is a result of the rush to build turbines in the windiest areas of China, surpassing the transmission grid’s ability to handle and transmit the power. Leaving wind farms turned off cost operators at least 8.16 billion yuan in lost revenue last year, according to the institute.

China had 11 percent of its wind power capacity sitting unused last year, with the rate rising to more than 20 percent in the northern provinces of Jilin and Gansu, according to the renewable energyregulator.

“This return is already very low due to operational risks,” said Zhou Yiyi, a Beijing-based analyst from Bloomberg New Energy Finance. “Companies will face losses if the return is below 9 percent, a threshold for the wind-power industry.”

The world’s biggest wind market in 2009 set four different tariffs for onshore wind farms ranging from 0.51 yuan a kilowatt-hour to 0.61 yuan a kilowatt-hour.

The nation’s top economic planning agency vowed last month to “adjust” prices this year.

Copyright 2014 Bloomberg

Lead image: Wind turbines via Shutterstock

RELATED ARTICLES

Wind turbines

Why It's Time To Get Real About Energy Security

Hannah Smith, Contributor Energy is Europe’s quiet crisis. While the clamour of failing economies, desperate migrants and political clashes grabs the headlines, energy policy is rarely front-page news, but it should be — the statistics are shocking.

Largest Solar Farm in Virginia Just Commissioned by Amazon Web Services

Renewable Energy World Editors Back in 2012, Amazon received a failing grade from Greenpeace regarding its use of renewable energy to power its cloud centers. Skip a couple years and in 2014 Amazon Web Services (AWS) announced a goal of achiev...

A Closer Look at Fossil and Renewable Energy Subsidies

Susan Kraemer, Contrubutor A new study by the International Monetary Fund puts the total cost of fossil fuel subsidies at approximately $10 million a minute globally, when health costs and environmental degradation are included, never mind the effec...

How to Win Planning Permission for Renewable Energy Projects (and Influence People)

Tildy Bayar, Contributor At Tuesday afternoon’s POWER-GEN Europe and Renewable Energy World Europe conference session in Amsterdam, Paul Davison of PR firm Proteus discussed how to best communicate with the public regarding renewable ene...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 3
1505REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

FEATURED PARTNERS



EVENTS

Doing Business in Brazil – in partnership with GWEC, the Global Win...

Brazil is one of the most promising markets for wind energy.  Ranke...

Mastering RETScreen® 4 for Clean Energy Project Analysis

Hands-on modeling class using RETScreen 4. Michael Ross designed this co...

RECAM WEEK

RECAM WEEK will bring together the incredibly successful SPG Central Am...

COMPANY BLOGS

Meteorological Technology International Magazine - SENSORS AND SENS...

Over the past 10 years, these sensing technologies have spread tre...

SunEdison Expands Residential Market Offerings with New PPA, Sales ...

SunEdison has largely focussed on the commercial and utility-scale solar...

Are You Ready for a Natural Disaster?

Guest post by Jenna Clarke  Living in the Shenandoah Valley of Virg...

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS